Full-year Business Summary for Fiscal Year 2016 (26th period)
January 1 to December 31, 2016

Aoyama Zaisan Networks Provides
the Most Comprehensive Asset Management Solutions
We at Aoyama Zaisan Networks Co., Ltd. have set the management objective of “contributingto the happiness of our customers through the management, administration, and succession ofproperty” and, in accordance with the objective, we are offering one-stop and comprehensive
property consulting primarily to individuals and business owners from the three perspectives ofproperty succession, business succession, and property management.

PresidentMasazumi Hasumi

Although corporate earnings and the employment and income environment have been improvedby various measures by the Japanese government and the Bank of Japan, the Japanese economy
remains in a temporary lull. Moreover, a series of events have changed the conventionalframework of the politics and economics, such as the UK’s decision to leave the EU and thewave of anti-globalism following the US presidential election. As for the tax system, 2017 tax
reforms will increase property and inheritance taxes on high-rise condominiums to close a tax
loophole, strengthen inheritance taxes on foreign assets, and review anti-tax haven rules. Thiswill add momentum to the reinforced tax collection efforts targeting the wealthy.
Against the backdrop of those significant changes in the social environment and the increased
interest in inheritance strategies and protection of property more than ever, everyone at ourcompany will put our effort to contribute to the happiness of our customers while also ensuring
sustainable growth in profits and reinforcing shareholder returns. We believe this will furtherenhance our corporate value.
We ask for our shareholders’ continuing support and cooperation.

Business Results for Fiscal Year 2016
Highlights of Consolidated Business Results (unit: million yen, rounded down to the nearest million)

Revenue

16,00014,00014,275

14,420800

Ordinary income

14,800800

Profit attributable to owners of parent

730
700

700

680

628
12,000600

10,000

500

8,000

400

400

6,000

300

300

4,000

200

200

2,000

100

100

0

Fiscal Year 2015 Fiscal Year 2016 Forecast for(25th period)(26th period) Fiscal Year 2017(27th period)

0587

600
471

Fiscal Year 2015 Fiscal Year 2016 Forecast for(25th period)(26th period) Fiscal Year 2017(27th period)

500

0518

Revenue by Segments (unit: million yen, rounded down to the nearest million)
100%
90%

110
1,277

127

47

1,245

1,101

80%
70%
60%
50%

5,467

10,537

10,147

40%
30%
20%
10%
Fiscal Year 2015 Fiscal Year 2016 Forecast for(25th period)(26th period) Fiscal Year 2017(27th period)

The above forecasts are based on the information available as of the preparation of this document, involving some uncertainty. Actual business results
might prove different from these forecasts, depending on the changes in business conditions.

0%

2,450

Fiscal Year 2014
(24th period)

2,366
Fiscal Year 2015
(25th period)

3,123
Fiscal Year 2016
(26th period)

Other revenue
Revenue from sublease
Revenue from real estate transactions
Revenue from asset consulting

01-02

Operating Report
In the fiscal year under review, the Japanese economy saw modest
improvements in corporate earnings and the employment and income
environment on the back of monetary easing. Overseas, however, theeconomic slowdown in emerging countries, the UK’s decision to leave theEU (European Union), and the US’s shift to a new administration have ledto turmoil in currency and stock markets, making the outlook uncertain. In
the real estate industry, which has a substantial effect on the Group, thebipolarization between land prices in urban areas, such as Tokyo, and inregional cities has become extremely pronounced. In particular, purchasing
demand is rising sharply in the income property market in Tokyo’s five
central wards.
The Group believes that people must have “financial, physical andemotional well- being,” as well as a balance between these three, to behappy. The Group focuses on the “financial” part of this equation byaugmenting its customers’ economic foundation, bringing happiness throughconsultation services on succession, management and administration ofpersonal properties, as well as consulting on corporate business succession
and real estate solutions, such as the effective use, purchase and sale of realestate, which accounts for two-thirds of individuals’ properties. These
financial consultation services are based on the Group’s belief that financial
assets are the foundation for leading a happy life.
Japan’s social environment faces major changes, such as a decliningpopulation and the aging of the baby boom generation. We believe that it isessential that we accurately ascertain the need for business succession, asset
investment and inheritance measures expected to continue over the next 20years, and as such we run our comprehensive asset consulting business withthe aim of standing by our customers and guiding them in a better direction.
Based on its management principle of “we will remain your best partner
over one hundred years,” the Group brings together its expertise, humancapabilities and a dynamism that enables it to meet customer expectations at
all times, thus satisfying its customers as an independent comprehensive
asset consulting company.
We have begun our first local revitalization project as a real estate specified
joint enterprise utilizing a special purpose company (SPC), permitted under
the revised Real Estate Specified Joint Enterprise Act. This project is thekeystone of urban revitalization plan of Komatsu City, Ishikawa Prefecture,
and will include the construction of a mixed-use facility, consisted of public
facilities, educational institutions, accommodations, and commercial
facilities on the site of the former Daiwa Komatsu store located in front of
JR Komatsu Station.
A groundbreaking ceremony was held on June 30, 2016, and theconstruction is expected to be completed in autumn 2017.
The need for redevelopment projects targeting the area near train stations
and urban redevelopment projects is rising, particularly in regional cities.
We will be actively involved in regional development projects to contributeto regional economic development as part of our contributions to society.
Meanwhile, we will continue to actively operate ADVANTAGE CLUB®.
Moreover, we established the Business Succession Navigator Corporation, ajoint venture with Nihon M&A Center Inc., on August 4, 2016, to provide
comprehensive consulting services on business succession and assetutilization.
In the past, there were no professionals able to provide comprehensive
solutions to the various types of issues involved in business succession(including inheritance strategies, selecting and training a successor, M&A,
and asset management after succession), and, therefore, there exists many
corporate managers who are not able to receive appropriate support.
The Group formed a business affiliation with Nihon M&A Center so that
we could provide one-stop consulting while offering a range of options forcustomers’ business succession by utilizing each other’s strengths on assetsuccession.
Going forward, we will solidify the relationship of the business affiliationand make the most of the expertise that we both have built up respectively,
and lead business successions to a successful conclusion. As a professionalgroup whose goal is to enrich the lives of corporate managers and theirfamilies, we will strive to help resolve those issues.
As a result of the above, in the fiscal year ended December 31, 2016,
revenue totaled ¥14,420 million (up 1.0% over the previous fiscal year),
operating income was ¥751 million (up 54.7%), and ordinary income
amounted to ¥628 million (up 33.3%), and profit attributable to owners ofparent was ¥587 million (up 13.3%).

Consolidated Financial Data
Million yen, rounded down to the nearest million

Consolidated Balance Sheet
Term
Item
AssetsCurrent assets
Cash and deposits
Accounts receivable
Real estate held for sale
Other inventories
Deferred tax assets
OthersAllowance for doubtful accounts
Fixed assets
Tangible fixed assets
Intangible fixed assets
Investments and other assets
Total assets

Fiscal Year 2015

Fiscal Year 2016

Dec. 31, 2015

Dec. 31, 2016

5,299
4,093
231
765
11120102(26)
1,921
137
322
1,460
7,220

6,632
5,350
145
234
3
260
729
(91)
2,626
133
309
2,184
9,258

Term
Item
Liabilities
Current liabilities
Fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Subscription rights to shares
Total net assets
Total liabilities and net assets

Fiscal Year 2015

Fiscal Year 2016

Dec. 31, 2015

Dec. 31, 2016

2,453
1,856
4,310

2,521
3,407
5,928

2,694
1,044
750
898
194
194(0)
20
2,909
7,220

3,077
1,066
772
1,238
241
245(4)
11
3,329
9,258
03-04

Consolidated Financial Data
Million yen, rounded down to the nearest million

Consolidated Income Statements
Term
Item
Revenue
Operating cost
Gross operating income
SG & A
Operating income
Non-operating revenue
Non-operating expenses
Ordinary income
Extraordinary income
Extraordinary loss
Income before income taxes
Income taxes-current
Income taxes-deferred
ProfitProfit attributable to owners of parent

Fiscal Year 2015
from Jan. 1, 2015
to Dec. 31, 2015

14,275
12,135
2,140
1,654
485
34
49
471
2−
473
79
(124)
518
518

Consolidated Cash FlowsTerm

Fiscal Year 2015

Fiscal Year 2016

Cash flow from operating activities

801

1,177

Cash flow from investing activities(162)(1,061)

Cash flow from financing activities

370

1,116

123

1,010

1,256

3,069

4,093

13−

4,093

5,350

Fiscal Year 2016
from Jan. 1, 2016
to Dec. 31, 2016

Item

14,42011,776
2,643
1,891
751
24
147
628
−4623
177(141)
587
587

Effect of exchange rate change on
cash and cash equivalents
Net increase (decrease) in cash andcash equivalents
Cash and cash equivalents at
beginning of period
Increase in cash and cash equivalents resulting
from change of scope of consolidation
Cash and cash equivalents at end of period

from Jan. 1, 2015
to Dec. 31, 2015

from Jan. 1, 2016
to Dec. 31, 2016

TOPICSTO

PIC1

Two ADVANTAGE CLUB® Locations were Formed
In the fiscal year ended in December 2016, the Company
opened two new locations of the real estate jointownership scheme called ADVANTAGE CLUB ® inaccordance with Real Estate Specified Joint EnterpriseAct.
During the 15 years since it was launched in 2002, a totalof 38 locations of the scheme were opened (of which 14
have been liquidated), with 34.55 billion yen in assets
under management and a total of 1,615 participants in thescheme (as of December 31, 2016). This program issteadily expanding and growing.
Hongo Todaimae (March)
Total origination value: 1.32 billion yen

Ginza 7-chome (October)
Total origination value: 4.25 billion yen
05-06

TO

PIC

2Dividends
We increased our annual dividend per share for the fiscal year ended in December 2016 to 23 yen, five yen (two yen for the first half
and three yen for the end of the year) higher than our initial forecast of 18 yen.

Fiscal year ended in December 2016 Fiscal year ended in December 2016(previous forecasts)(actual)First half of fiscal year
End of fiscal year
Total (annual)

TOPIC

6 yen
12 yen18 yen

8 yen
15 yen23 yen3Shareholder Incentive Plan
The Company provides benefits under the following conditions to shareholders recorded in the shareholder register as of June 30.
Shareholders who hold 1,000 sharesor moreShareholders who hold 10,000 sharesor more continuously for over 1 year

Select 1 from 10 products worth 3,000 yen

A meal certificate from UKAI CO., LTD. (20,000 yen)or Ukai special select beef (worth 20,000 yen)

07-08

Stock Information / Corporate Data
Stock Overview(as of December 31, 2016)

Number of shares in issue

11,864,100

Number of shareholders

Incorporated
Capital stockBusiness line
Number of employees(Group)Consolidated
subsidiaries(as of December 31, 2016)

9 companies including Aoyama Estate Co., Ltd.,
Nihon Shisan Soken Co., Ltd. and Proggest Co., Ltd.

President
Director, Managing Executive Officer
Director, Managing Executive Officer
Director, Managing Executive Officer
Director, Executive Officer
Director, Executive Officer
Director, Executive Officer
Director, Executive Officer
Outside Director
Outside Director
Outside Director
Standing Auditor
AuditorOutside Auditor

Overseas companies and others/26(0.53%)
Securities firms/26(0.53%)

Aoyama Zaisan Networks Company, Limited
3F Aoyama Tower Place, 8-4-14 Akasaka, Minato-ku, Tokyo 107-0052
Tel. +81-6439-5800
September 17, 1991
1,066.15 million yen
Individual property consulting, business succession
consulting and real estate solutions consulting
168 (as of December 31, 2016)

Executives

Other companies/71(1.46%)

Total
4,876

Name
Masazumi Hasumi
MID Investment Co., Ltd.
Yasuo Takano
Mutsumi Shimada
Eiichiro Iwase
MSIP CLIENT SECURITIESTomio Sugimura
Nihon M&A Center Inc.
Hiroko Iwase
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

Name of Company
Head Office

Individuals and others/4,748(97.37%)

4,876

Major Shareholders (Top 10)

Corporate Data

Number of Shareholders by Category

Shares held
1,207,100
670,000
650,700
300,700
276,200
249,800
215,900
150,000
105,900
104,600

Shareholding ratio
10.17
5.65
5.48
2.53
2.33
2.11
1.82
1.26
0.89
0.88

Number of shares held by Category
Individuals and others/9,563,151 (80.61%)
Other companies/1,218,800 (10.27%)

Total
11,864,100

Overseas companies and others/501,529 (4.23%)
Securities firms/448,320 (3.78%)
Financial institutions/132,300 (1.12%)

Notes for Shareholder
Fiscal year
Base date for the determination of shareholders
with year-end dividend entitlements
Base date for the determination of shareholders
with interim dividend entitlements
General meeting of shareholders
Administrator of the shareholder registry/Accountmanagement institution for special accountContact(from March 28, 2017)

Masazumi Hasumi
Masayuki Yagi
Takeshi Matsuura
Yasuo Takano
Yoshikazu Mizushima
Seido Nakatani
Shinji Shimane
Takaomi Ogawa
Haruo Shimada
Keiji WatanabeMichihiro Nagasaka
Yoichiro Shimada
Hisao Nakatsuka
Hiroaki Rokugawa

Financial institutions/5(0.10%)

Account management institutionfor special accounts
Contact
Stock exchange listings
Public announcements

January 1 to December 31
December 31
June 30in March
Mitsubishi UFJ Trust and Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation, Stock Transfer Agency Department
7-10-11, Higashisuna, Koto-ku, Tokyo, 137-8081
Tel. 0120-232-711(toll-free, Japan only)
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Trust Bank, Limited, Stock Transfer Agency Department
2-8-4, Izumi, Suginami-ku, Tokyo 168-8507
Tel. 0120-782-031(toll free, Japan only)
TSE Second Section
To be announced on the Company’s website(For reference)
1. Due to the dematerialization share certificates, shareholders’ address changes, repurchase requests, and such other procedures, as arule, are filled with the account-administrating institutions where shareholders have their accounts (securities companies, etc).
Shareholders are requested to contact their account holding securities companies, etc., for information. Shareholders are remindedthat application filings cannot be made with the administrator of shareholder registry (Mitsubishi UFJ Trust and Banking Corporation).
2. For information on procedures concerning shares recorded in special accounts, shareholders are requested to contact The Sumitomo
Mitsui Trust Bank, Limited, the account administration institution for special accounts. Shareholders are reminded that procedures
cannot be processed by Mitsubishi UFJ Trust and Banking Corporation, which serves as the administrator of the shareholder registry.
3. Dividends hitherto uncollected by shareholders are paid by Mitsubishi UFJ Trust and Banking Corporation, Head Office Branch.

09-10

List of Nationwide Network
Aoyama Zaisan Networks’ Nationwide Network(as of March 1, 2017)

NSSTPS Business Model Association* NSSTPS is the abbreviation for Nippon Shisan Soken Total Planning System.

Hokkaido, Tohoku

KinkiHokkaido, Tohoku

Kinki

Zaisan Networks Sendai Co., Ltd. (MISAWA BUSINESS MANAGEMENT INC.)
Zaisan Networks Fukushima Co., Ltd. (Aoki Accounting Corporation)
Aoyama Zaisan Networks Hokkaido Support (IKEWAKI TAX, ACCOUNTING & CONSULTANTS GROUP)
Aoyama Zaisan Networks Yamagata Support (Yutaka Licensed Tax Accountant’s Corp)
Aoyama Zaisan Networks Aomori Support (Konda Accounting Office)Zaisan Networks Kyoto Co., Ltd. (SHINKEIEI SERVICE SHIMIZU Tax Co.)
Zaisan Networks Osaka Co., Ltd. (Nihon Keiei Tax Corporation)
Zaisan Networks Hyogo Co., Ltd. (Nihon Keiei Tax Corporation)
Seki Soken Zaisan Partners Co., Ltd (AZ TAX Tax Corporation)
Aoyama Zaisan Networks Wakayama Support (Nishioka Accounting Office)Aoyama Zaisan Networks Kyoto Nijo Support (HIROSE LICENSED TAX ACCOUNTANT)
Aoyama Zaisan Networks Mie Support (Midland Management Group Mie)

Chiso Tax Corporation
MISAWA BUSINESS MANAGEMENT INC
Aoki Accounting Corporation Inc.

HIROSE LICENCED TAX ACCOUNTANT
Ueda Certified Public Accountant Licensed Tax Accountant Office.
CREAS Corporate Advisers Co., Ltd.

Kanto, Koshinetsu

ShikokuKujirai Tax CorporationKei Yo Research InstituteZeimu Sogo Tax Corporation
Nihon Mirai Accounting & Tax Co.
Nakamura Certified Public Tax Accountants Office
CREAS Corporate Advisers Co., Ltd.
eclat Consulting
Top Accounting Firm & coAi Partners Tax Corporation
Oyama accounting Co., Ltd
Masatoshi Yoshikawa Certified Tax Accountant Office
Koyama Sadao tax accounting office

Nonaka Keiei Corporation

Kanto, Koshinetsu
Nihon Shisan Souken Works Co., Ltd. (tax accountant office)Zaisan Networks Tochigi Co., Ltd. (Tajima Accounting Office)Zaisan Networks Motegi Co., Ltd. (MOTEGI tax consultant office)Aoyama Zaisan Networks Saitama Co., Ltd. (CWM Research Institute)
Zaisan Networks Kawasaki Co., Ltd. (Tokyo Japan Certified Tax Accountants’ Corporation)
Zaisan Networks Nagano Co., Ltd. (Mochizuki Tax Corporation)
Aoyama Zaisan Networks Ibaraki Support (Masuyama Accounting Office)Aoyama Zaisan Networks Kanto Chuo Support (MMG Tax Corporation)
Aoyama Zaisan Networks Denenchofu Support (Saito Tax Corporation)
Aoyama Zaisan Networks Yokohama Support (YAMADA SYNTHETIC OFFICE)
Tokai, Hokuriku
Zaisan Consultants Kanazawa Co., Ltd. (Hatake & Starship Tax Corporation)
Zaisan Networks Shizuoka Co., Ltd. (Iwasaki Tax Corporation)
Zaisan Networks Nagoya Support (Meinan Consulting Network)
Aoyama Zaisan Networks Fukui Support (Uesaka Consulting Firm)

Chugoku, Shikoku
Zaisan Consultants Tokushima Co., Ltd. (M.A.S. AGENT GROUP)
Midori Zaisan Consultants Co., Ltd. (Midori Tax Corporation)
Aoyama Zaisan Networks Shimane Support (Chikashige Tax Office)
Kyushu, Okinawa
Zaisan Networks Fukuoka Co., Ltd. (SHINOHARA CPA OFFICE)
Zaisan Networks Okinawa Co., Ltd. (PS Accounting Office)Aoyama Zaisan Networks Nagasaki Support (Chuo Sogo Accounting Office)Aoyama Zaisan Networks Saga Support (MOROI Accounting Firm)

Tokai, Hokuriku
ARIASU ZEIRISIHOUJIN.
Midori Management System, Co., Ltd.
Meito Asset Consulting, Co., Ltd.
MMPC Consultants Corporation
KIMURA KEIEI BRAIN CO., LTD.